Asked by
Deonte Brown
on Oct 14, 2024
Verified
If the value of the marginal product of labor exceeds the wage rate, then a competitive, profit-maximizing firm would want to hire less labor.
Marginal Product
The marginal product is the additional output resulting from a one-unit increase in the use of a variable input while holding other inputs constant.
Wage Rate
The amount of compensation that workers receive in exchange for their labor per unit of time.
- Execute strategies involving the marginal product and its value to maximize profit outcomes.
Verified Answer
NQ
Learning Objectives
- Execute strategies involving the marginal product and its value to maximize profit outcomes.